Korczak, Korczak and Lasfer (2010) (hereafter KKL) examine the likelihood and amount of corporate insider (company director) trading before a news announcement about a corporate event. The novel feature of the paper is that it examines insider trading after distinguishing between good and bad subsequent news announcements. The authors construct a unique dataset of 119,179 news announcements and...

A commonly used dynamic epistemic logic is one obtained by adding common knowledge and public announcements to a basic epistemic logic. It is known from Kooi (2007) that adding public substitutions to such a logic adds expressivity over the class K of models. Here I show that substitutions also add expressivity over the classes KD45, S4 and S5 of models. Since the combination of common knowledg...

Since 1990, federal bank supervisors have announced formal enforcement actions publicly. The change in regime provides a natural laboratory to test two propositions: (1) claims by economists that putting confidential supervisory information in the public domain will enhance market discipline and (2) claims by bank supervisors that releasing such data will spark runs. To evaluate these propositi...

This paper examines the information content of loan announcements using an event study methodology. I differentiate between loan announcements according to the type of lending institution. The empirical results suggest that the information released by bank loans announcements are greater than loans announced by other lenders. Furthermore, the market response is greatest when the borrower firm h...

This study shows that analysts vary significantly in their responsiveness to earnings announcements, where responsiveness is defined as promptness of analysts’ first forecast revisions for the next quarter since the prior quarterly earnings announcements. Further evidence indicates that analysts’ responsiveness improves the efficiency of their expectations of future earnings immediately after t...

Investigating various corporate announcements and abnormal return days, I observe that around 2% of daily trading volume decreases only before scheduled earnings announcements. This empirical pattern is robust across different specifications and periods. Also, proxies of ex ante information asymmetry are consistently related to the trading volume only before scheduled earnings announcements. Th...

Companies regard innovation as a central element of their business. However, as not all innovation types are the same, the central question is: should their announcements bring about the same effect on performance? This article analyses potential differences in firm value derived from the innovation-type announcements ‘R&D’, ‘product’ and ‘process’, made by intensive news-generating firms such ...

Collusion is when firms coordinate on suppressing competition, and coordination typically requires that firms communicate in some manner. This study conducts experiments to determine what modes of communication are able to produce and sustain collusion and how the effi cacy of communication depends on firm heterogeneity and the number of firms. We consider two different communication treatments...

When subjects can make non-binding announcements of possible contributions to a public good numerically, there is no effect on average level of contributions in a public goods experiment relative to play without announcements. But a detailed analysis of this experiment shows that pre-play announcements increased the variance of achieved cooperation among groups, leading both to more highly coop...

With the increasing announcement of green IT initiatives by firms, there is a need to investigate the financial impact of these announcements on a firm’s market value. Invoking the resource-based view, this study analyzes the impact of specific types of green IT announcements on a firm’s market value using the event study methodology. Our sample comprises 160 news reports of green IT initiative...